Factors influencing the increase or decrease of the price of gold concern to all those interested in gold, both for gold investors, either directly or indirectly because the price of gold related and largely controlled in determining the global economy and its index.
There are basically five key factors affect the price of gold, namely:
1 – the value of the U.S. dollar.
2 – jewelery demand from Asian and Chinese markets.
3 – central banks
4 – gold production.
5 – Increase investment in gold
The first factor that control the price of gold is the U.S. dollar. Whenever the U.S. dollar strong and its value rise we watch a decline in gold price, and vice whenever the value of the U.S. dollar weakened and decreased we watch a higher gold price, because people are scared of the weak dollar Instead, they resort to investing in gold bullion and also increasing the demand for gold because people tend in this case any devaluation dollar hoarding gold, and a whole other commodity, gold here price rises due to supply and demand.
Both China and India are the biggest buyers of gold in the jewelry market. In 2004, Chinese citizens were granted ownership Ignoti for the first time in history. This has raised a great demand for gold bullion, which affects the price of gold all over the world. In 2009, the decline was recorded in 32% of the demand for gold jewelry because of the global economic crisis, which led to a slight decline in gold prices.
Monetary policies of central banks in cases of inflation influential important for the gold price, because interest rates in banks are low because people away from investing in banknotes and turn to invest in gold in the hope of better returns. Either when you give banks interest rates are high, the price of gold goes down.
Another factor influential in the price of gold is the high cost of production in the gold mines, and strikes of miners, and the deterioration of the political situation, and the sharp increase in oil prices after the Iraq war and the September 11 attacks, lower gold production in the past five years. Ever-increasing world population increases the demand for investment in gold bullion. Finally, the natural desire of man to the gold treasure.